Rural development agency NABARD is to roll
out a new concept called Joint
Liability
Group (JLG)
to provide institutional credit to small farmers like share croppers, oral
lessees and agricultural labourers.
Conceived on the pattern of Self Help
Groups (SHG), NABARD will provide refinance facility to banks for providing
lending to small and marginal farmers who are normally deprived of finance.
"We are focusing on a new concept called
Joint Liability Group on the concept of SHGs. Under this, credit needs of small
and marginal farmers like share croppers, oral lessees will be taken care of. A
concept note in this regard has been prepared and issued to banks," NABARD
CMD H K Bhanwala told reporters in Chandigarh on Wednesday.
JLG is aimed at meeting the credit needs of share croppers and farm labourers who would
form a group by joining together, he said. "Efforts will be made to provide credit
under oral lease wherein it will be ensured owner of land does not lose (land)
rights and a lease is created and on the basis of that lease, farmers could be
financed," said Bhanwala who is the youngest CMD of NABARD. "Banks are ready to finance (under this
scheme) and it is up to the state governments to see the opportunity," he
said.
He said JLG scheme will be highly beneficial for states like Punjab and
Haryana where average land holdings are shrinking and strength of such
farmers is large in these states.
NABARD
At the instance of Government of India
Reserve Bank of India (RBI), constituted a committee to review the arrangements
for institutional credit for agriculture and rural development (CRAFICARD) on 30 March 1979, under the Chairmanship
of Shri B.Sivaraman, former member of
Planning Commission, Government of India to review the arrangements for
institutional credit for agriculture and rural development. The Committee, in
its interim report, submitted on 28 November 1979, felt the need for a new
organisational device for providing undivided attention, forceful direction and
pointed focus to the credit problems arising out of integrated rural
development and recommended the formation of National Bank for Agriculture and
Rural Development (NABARD). The Parliament, through Act,61 of 1981, approved the setting up of NABARD. The bank came into existence on 12 July 1982
by transferring the agricultural credit functions of RBI and refinance
functions of the then Agricultural Refinance and Development Corporation
(ARDC). NABARD was dedicated to the service of the nation by the late Prime Minister Smt. Indira Gandhi on
05 November 1982.
NABARD was set up with an initial capital of
100 crore. Consequent to the revision in the composition of share
capital between Government of India and RBI, the paid up capital as on 31 March 2013, stood at 4000 crore with Government of India
holding 3,980 crore (99.50%) and Reserve
Bank of India 20.00 crore (0.50%).
